The St Laurence Property Development Fund is intended to take advantage of St Laurence’s property management and development experience and expertise, and allow investors to share in a variety of property development opportunities.
In the past couple of years St Laurence has played a white knight role with a number of struggling property investments. It has stepped in, sorted out the issues, and improved returns to investors.
The fund is projected to provide a cash return of 13.5% per annum. St Laurence is seeking to raise $10 million to start the fund, with the right to accept over-subscriptions of up to a further $10 million.
"This fund provides all the key features that have appealed to many of our investors in the past – an attractive fixed rate and fixed term investment based on St Laurence’s core property competency, with the added ability for them to share in the proceeds upon wind-up," St Laurence’s managing director Kevin Podmore says.
“It is most suitable for investors who have a reasonable tolerance for investment risk and who seek the opportunity for a higher return, or to investors who want to enter the property development market but are not able to fund such activities themselves.
“The fund will invest in development projects in partnership with proven and reputable developers and only in respect of projects that meet the fund’s strict investment criteria. These projects may comprise a combination of new developments, redevelopments or sub-division activity in either of the retail, industrial, residential and commercial property markets in New Zealand and, potentially, Australia.
St Laurence will match investors’ equity on a 1 for 1 basis.”
“We have also carefully calculated the 13.5% p.a. cash return to provide investors with an equitable reward for risk. We are confident of our ability to perform in the property development market and, to demonstrate this confidence, St Laurence will only take its performance fee once the targeted returns have been exceeded.
ST LAURENCE PROPERTY DEVELOPMENT FUND - KEY INVESTMENT FEATURES
- Investment details in registered prospectus dated 19 April 2006
- Stapled $5,000 parcels consisting of 1 Bond at $4,500 and 500 shares at $1 each
- Very attractive cash return of 13.50% p.a. per parcel
- Participation in potential growth of the value of the company through share ownership
- Strong Management track record
- Manager’s contribution of equity on a 1:1 basis with investors ensures interests are aligned
- Initial investment term of 5 years, with the ability to extend the term by up to a further 5 years upon the ordinary resolution of Bondholders
- Total offer of $10 million (plus $10 million of over subscriptions)
- Offer closes 30 June 2006 (or such earlier or later date as the Issuer may determine).
When fully subscribed (on $10 million subscriptions) the company will have raised $11 million made up as follows: $9m Bonds (2,000 Bonds @ $4,500 per Bond), plus $2m equity (1,000,000 shares @ $1 per share plus $1m equity from St Laurence Holdings Limited).
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